Honeywell is in H&S formation. The price bounced from the neck line around $195. Not all H&S break down below the neck line. But one thing that is worrisome is a huge gap right below the neck line that could get filled. It resisted filling this time and will probably head to the shoulder line area of $217 to $220 area. ER is in about 3 days so it could either send the stock past $220 or break below $195 and fill the gap at $185. There is no way of knowing. The stop loss can be set at $194. Trader would have to be nimble and raise stop loss as the price climbs as it can break down rather quick. Target 1 - $217 Target 2 - $220 Risk - breaking below $195 and fill the gap at $185. ——————————————————— How to read my charts? - Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines. - The yellow horizontal lines shows support and resistance areas. - Fib lines also shows support and resistance areas. - The dotted white lines shows price projection for breakout or breakdown target. Disclaimer: Do your own DD. Not an investment advice.